MMTC records Rs 91 crore loss in Q3

State-owned trading firm MMTC today reported a net loss of Rs 91 crore for the third quarter ended December 2011 mainly due to provisioning of Rs 113 crore pending completion of special audit on account of certain acts of "commission and omission".

For the corresponding quarter of the previous fiscal, the company had posted a net profit was Rs 1.46 crore.

"The company had to make adhoc provision of Rs 113.46 crore pending completion of internal investigation/special audit on account of certain acts of commission and omission pertaining to recoverables from debtors towards earlier this year," MMTC said in a filing to the Bombay Stock Exchange.

The total income was up at Rs 18,913 crore in the December 2011 quarter.

In the year ago period, the company's total income stood at Rs 18,736 crore.

The shares of the company were trading at Rs 876.75 per piece, down 1.06% from the previous close.

The central government, which holds 99.33% stake in the trading firm, has plans to divest 10% of its shares.

However, disinvestment in MMTC may not be possible in the immediate future as the stock market conditions are not appropriate for fixing the price band of the thinly traded shares of the company, a top Commerce Ministry official had said.